Gay Jones & Kuhn Small Business Update:
MISSISSIPPI SMALL BUSINESSES ELIGIBLE FOR COVID RELIEF FUNDING
May 18, 2020
The Mississippi legislature passed new legislation last week intended to help small businesses impacted by COVID-19. We encourage all small businesses to look into these options for Direct Payments or Grants to help relieve the impact of COVID-19 on small businesses. If you need more information or help navigating these processes, please reach out to our firm, and we will assist you in connecting with the right resources.
A full summary of the legislation can be found at http://billstatus.ls.state.ms.us/documents/2020/pdf/SB/2700-2799/SB2772SG.pdf. The below information includes excerpts from the overview provided by Mississippi State House District 64 Representative Shanda Yates. Rep. Yates provides updates and information on her official Facebook page.
The Mississippi Legislature passed legislation that appropriates $300 million for small businesses that have been impacted by COVID-19. Senate Bill 2772 sets aside $300 million from the Coronavirus Relief Fund to create two programs providing a direct payment to some businesses and a grant to others.
The following categories of small business taxpayers having 50 or fewer full-time equivalent employees that were registered with Department of Revenue before March 1, 2020, had an Employer Identification Number or a Social Security Number before March 1, 2020, that were shut down or had their operations restricted via executive or municipal order will receive a $2,000.00 direct payment:
Personal Care- Salons and Barbers
Amusement and Recreation
Schools and Instruction- Dance and Gym
Performing Arts Companies- Dance Companies
Amusement Parks and Arcades
Motion Picture and Video Industries
Jewelry, Luggage & Leather Goods
Sporting Goods, Hobby and Music Instrument
Book Stores and News Dealers
Office Supplies and Gift Stores
Used Merchandise Stores
Other Miscellaneous Retail Stores
Childcare businesses (other than home-based childcare)
Mississippi businesses in good standing with 50 or fewer full-time equivalent employees that suffered a business interruption due to COVID-19 will be eligible to apply for a grant up to $25,000.00.
The grant program will be administered by the Mississippi Development Authority.
For the first 21 days of the application process, applications will only be taken for applicants that have not received Paycheck Protection Program (PPP) or Economic Injury Disaster Loan (EIDL) funds or any federal funds reimbursing COVID-19 related business expenses. Thereafter, any eligible business may apply.
To be eligible, business must have filed a tax return in 2018 or 2019, or for a business formed between January 1, 2020 and before March 1, 2020, intends to file taxes for tax year 2020.
The amount of the grant will be a base amount of $1,500.00, plus the greater of (1) $500.00 per full time equivalent employee, or (2) the amount of itemized “eligible expenses” the applicant demonstrates in the sworn application. The grant cannot exceed $25,000.00.
“Eligible expenses” that may be itemized under the application track are defined as cost, not reimbursed from another source, incurred by an eligible business for public health measures or due to interruption of business may consist only of mortgage interest, rent, payroll and utilities, or other COVID-19 related expenses allowed by law, each for no more than a two-month period. Eligible expenses shall not include lost profits.
Up to 50% of the grant will be reduced by the amount of any federal Paycheck Protection Program (PPP) funds, Economic Injury Disaster Loan (EIDL) funds and business interruption insurance proceeds received by the grant recipient.
$40,000,000.00 of the grants will be made available to minority-owned businesses.